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Securitization People and Markets

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  • BNP Paribas, Commerzbank and the Royal Bank of Scotland are among the European banks looking to unload an estimated EUR100 billion ($130.7 billion) in debt to meet new capital requirements through a wide range of debt instruments, including covered bonds and hybrid debt.
  • Top executives of the Royal Bank of Scotland and Lloyds Banking Group say their distressed loan books are improving, with RBS’ non-performing loans rising only 6% last year, while Lloyds’ impaired loans have dropped by 10%.
  • The sales of commercial mortgage-backed securities linked to multifamily buildings by Fannie Mae, Freddie Mac and Ginnie Mae soared 81% in the first quarter to $13.5 billion from a year earlier, the highest quarterly issuance since Bloomberg began tracking the data in 1993.
  • CIFG Assurance North America has asked a New York Supreme Court justice to add GreenPoint Mortgage Funding, a now-defunct loan originator, as a defendant in its lawsuit against Goldman Sachs involving $275 million in mortgage-backed securities.
  • ING Direct has announced that it is exiting from the wholesale mortgage business after the online bank was recently acquired by Capital One Financial.
  • Morgan Stanley has expanded its policy of clawing back executive pay by including all deferred, cash, long-term incentive awards, according to the investment bank’s annual proxy statement.
  • Credit Suisse has named Roger Lehman to succeed Dale Westhoff as head of securitized product research. Lehman will also continue as lead strategist for commercial mortgage-backed securities.
  • Allied Irish Banks is closing is offshore subsidiaries in Isle of Man and Jersey by the end of next year as part of its plan to become a smaller, domestically focused bank.
  • The Rothschild family has announced plans to merge its French Rothschild & Cie Banque and Rothschilds Continuation Holdings, which holds assets including London-based bank N.M. Rothschild & Sons.